2 Shorts & a Buy

Jon Markman’s diligent research efforts not only provide
comprehensive analysis and forecasts of current market trends, but also help
investors pinpoint stocks with well-timed trading potential—short or long.
Here, he finds three such opportunities…

“When judging the strength of the market, it is
important to see which stocks are leading. When defensive stocks are leading,
investors are rewarding companies that have low risk, like utilities. There were
72 new 52-week highs on the NYSE recently, which is strong, but a closer look at
the leaders may surprise you: 26 were closed-end bond funds and the rest were a
mix of high-yielding stocks, including energy limited partnerships and tobacco.
When high yielding stocks lead, investors are betting that bonds will be going
up and yields will be falling—exactly what is happening now.

“My research suggests that the market will have
trouble going higher without proper industrial and technology stock leadership,
and I will not recommend chasing any high yielding stocks.

“St. Joe (JOE
NYSE), a real estate development company primarily in the northwest
panhandle of Florida, builds home and resort projects, usually at the high-end
of the price spectrum on the Gulf of Mexico. JOE reported earnings of 25 cents
per share in the most recent quarter, down 50% from a year ago, and also lowered
guidance to $0.70-$1.05 for the year, which still represents a huge P/E of at
least 50. The stock rallied after earnings backed to its downtrend line and now
is at an attractive entry point on the short side. Short JOE at current prices.
Target is $40. Set a stop on a close over $51.

“Anderson's
Inc.(ANDE NASDAQ) is a
diversified agriculture business operating in the rail, turf, and retail
segments. The company was a huge winner over the past 18 months. Anderson's
stock rocketed from $15 to $60 in just seven months on hopes that ethanol
companies were going to hit gold. Now, as the mania has died down, so have
shares of Anderson's, and the stock continues to move lower. Short ANDE at
current prices. Cover on a close over $40. Target is $30.

“AMN
Healthcare Services(AHS NYSE)
recruits and places physicians, traveling nurses, and other healthcare
professionals on a temporary or permanent basis. The company's quarterly
revenues increased 63% over the prior year, mainly due to an acquisition. AHS
has been benefiting from the shortage of healthcare professionals, especially
nurses. Shares have hit a multi-year high, eclipsing important resistance
levels. Buy AHS at current prices. Target is $26. Set a stop on a close under
$20.50.”